Agency would study private takeovers of orphaned wells for energy projects

The proposed memorial would ask the Oil Conservation Division to study options for transferring orphaned wells to interested companies. The study would cover orphaned wells in New Mexico, including wells that may become orphaned in the future. The division would study the options with companies interested in using wells for energy storage or recovering hydrocarbons.

The proposed memorial would ask the division to estimate investment needs and possible profits, compare them with state plugging costs, and identify legal barriers and possible permit or financial-assurance changes. The estimates would cover different possible uses of orphaned wells and state plugging costs over the next decade or longer. The division would be asked to present its findings and recommendations to relevant interim legislative committees by November 1, 2026.